INVESTMENTS®

September 30, 2016

The Corporate Bond Market Teeter Totter

Market OverviewBack in grade school, it was exciting to go out for recess a couple of times a day. Sometimes we would play on the teeter totter. While not the most exciting piece of playground equipment, the teeter totter provided a generally safe form of entertainment. However, there was always the risk that the person on the other side would jump off, sending us crashing to the ground. The corporate bond market currently seems to be facing similar types of risk.

Despite these risks, the domestic corporate bond market continues to show resilience. After widening sharply in January and the first part of February, corporate bond spreads (the difference between corporate bond yields and Treasury yields) have generally moved tighter since, with lower-rated bonds and higher beta sectors, such as Metals/Mining and certain Energy subsectors, performing the best. Several forces have been at work supporting the market including foreign central banks easing of monetary policy, accommodative Federal Reserve policies, a strong stock market, the continued flow of funds into corporate bond mutual funds and exchange traded funds (ETFs) and investors’ continued need for yield in a low-yield environment. However, there are headwinds that have the potential to widen corporate bond spreads such as weakening credit fundamentals, very high investment grade new debt issuance, global economic weakness and troubles facing European banks. For the time being, the market seems to be ignoring these risks as the need for yield remains a strong incentive to buy domestic corporate bonds. But, how long could it be before the corporate bond market teeter totter moves in the other direction?

So far this year the Treasury yield curve has shifted downward significantly and flattened. Five to 30-year Treasury yields have declined approximately 60 to 70 basis points (bps) due to global economic weakness, the U.S. Federal Reserve keeping domestic interest rates low, and domestic yields that remain significantly higher, and therefore more attractive, than many foreign government bond yields. Given that Treasury yields have fallen and corporate bond spreads have tightened, corporate bond benchmarks have posted solid total returns so far in 2016. The Barclays U.S. Corporate Index and Barclays U.S. High Yield Index posted 9.20% and 15.11% total returns, respectively, through the third quarter.

Portfolio Performance and PositioningThe Madison Corporate Bond Fund slightly underperformed the Barclays U.S. Corporate Index during the first three quarters. The fund benefited from yield declines in the belly of the curve and timely purchases in the new issue market. However, the fund has been negatively impacted primarily by its underweight of longer-dated securities, as corporate bonds in the longer part of the curve significantly outperformed shorter-term corporate bonds through the third quarter 2016. On a sector basis, being overweight certain subsectors, such as Midstream Energy,

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Past performance does not predict future results. Please refer to the final two pages of this piecewhich contain current performance information for the fund, the risks of investing in the fund and acomplete list of the fund’s individual portfolio holdings as of quarter end. Individual portfolio holdings are identified to illustrate our approach to investing the fund’s portfolio and are not intended to represent a recommendation to buy or sell any such security.

Madison Corporate Bond Fund Investment Strategy Letter

Paul Lefurgey, CFAHead of Fixed Income

Industry since 1988

Allen Olson, CFAPortfolio ManagerIndustry since 1998

and underweight Oil Field Services added to relative performance, while being underweight Metals/Mining detracted from relative performance. Our overweight in BBB and high-yield securities also added to relative performance so far this year.

The fund’s yield to maturity remains slightly higher than the Barclays U.S. Corporate Index®, while interest rate risk is lower due to the fund’s shorter duration. We feel this is prudent given that interest rates and all-in corporate bond yields remain very low relative to historical levels. Due to low all-in corporate bond yields, we remain underweight the long-end of the yield curve. However, we did add some 30-year corporate bonds to the portfolio in 2016 to add yield as opportunities presented themselves in the new issue market. In the high yield corporate bond market, we remain extremely selective and focused on higher quality issuers as we view the lower quality high yield space as overvalued.

Despite a lower than benchmark duration, Madison Corporate Bond Fund increased its duration slightly and sold municipal securities this year, as corporate bond spreads became more attractive on a relative basis at certain times. We participated heavily in the new issue market to take advantage of attractive new issue concessions and positioned the fund to take advantage of the spread tightening discussed earlier.

Market OutlookThe domestic corporate bond market continues to perform well due to a strong technical bid given large flows into corporate bond mutual funds and ETFs and the relative attractiveness of domestic corporate bond yields versus global yields. That said, there are many headwinds that have the potential to affect corporate bond spreads down the road. Credit metrics have weakened as companies have issued debt to take advantage of low yields. Shareholder-friendly activity such as share repurchases, dividend increases, and acquisitions continue at high levels. Given several dissenting votes at the recent Federal Reserve meeting in favor of higher interest rates, there remains a risk that future Fed Funds rate increases could also rattle the corporate bond market. We have been very cautious with recent purchases in the corporate bond market and have tended to avoid lower quality, illiquid issues that could experience high volatility if the corporate bond market backdrop deteriorates.

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Bonds are subject to certain risks including interest-rate risk, credit risk and inflation risk. As interestrates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds.Although the information in this report has been obtained from sources that the firm believes to be reliable, we do not guarantee its accuracy, and any such information may be incomplete or condensed. All opinions included in the report constitute the authors’ judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Madison Funds are distributed by MFD Distributor, LLC. Madison Asset Management, LLC. ©October 6, 2016.

Paul Lefurgey Allen Olson

1 Growth of $10,000 for the years shown is calculated at NAV and assumes all dividends and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. 2 Average annual total returns and calendar year returns assume all distributions are reinvested and reflect applicable fees and expenses. Index returns reflect broad measures of market performance compared the fund and reflect no deduction for sales charges, account fees, expenses or taxes. You cannot invest directly in an index.3 Expense ratios are based on the fund’s most recent prospectus.Performance data shown represents past performance. Investment returns and principal value will fluctuate, so that fund shares, when redeemed, may be worth more or less than the original cost. Past performance does not guarantee future results and current performance may be lower or higher than the performance data shown. Visit madisonfunds.com or call 800.877.6089 to obtain performance data current to the most recent month-end.

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$16,353

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The Value of Long-Term Investing

Sep 30, 2016

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Paul Lefurgey, CFA Head of Fixed Income Industry since 1988

Allen Olson, CFA Portfolio Manager Industry since 1998

Experienced Management

madisonfunds.com

Distribution Frequency

Monthly

Risk Measure (5-year) Class Y

Standard Deviation 3.6%

Downside Capture 85.2%

Upside Capture 79.2%

Total Net Assets

$24.1 Million

Portfolio Turnover

37%

Total Number of Holdings

147

Fund Features

• Fund seeks to obtain high total investment returns in the form of income and share price appreciation

• Active duration, yield curve, sector, quality and security selection decisions

• Goal is to find best combination of yield, credit risk and diversification

• Focus on managing risk

Class Ticker Inception Date Exp. Ratio3

Y COINX 7/1/07 0.65%

Calendar Year Returns2 (%) with Downside Performance Highlighted

2008 2009 2010 2011 2012 2013 2014 2015Class Y 4.29 10.58 5.81 7.83 5.72 -2.03 5.17 -0.35

Bloomberg Barclays U.S. Corporate Bond Index

-4.94 18.68 9.00 8.15 9.82 -1.53 7.46 -0.68

Bloomberg Barclays U.S. Credit Bond Index -3.08 16.04 8.47 8.35 9.37 -2.01 7.53 -0.77

Characteristics (years)Effective Duration 6.7

Avg. Maturity 9.6

Yields30-day SEC Yield 2.28%

30-day Effective Yield 2.90%

Average Annual Total Returns2 (%)Three Months YTD 1 Yr 3 Yr 5 Yr Since Inception

Class Y 1.39 8.68 7.84 4.68 3.83 5.46

Bloomberg Barclays U.S. Corporate Bond Index 1.41 9.20 8.56 5.63 5.14 6.15

Bloomberg Barclays U.S. Credit Bond Index 1.23 8.86 8.30 5.44 4.83 5.99

Standard Deviation measures dispersion from the an average, which, for a mutual fund, depicts how widely the returns varied over a certain period of time. Higher deviation represents higher volatility. Downside Capture Ratio measures a fund’s performance in down markets relative to its benchmark. It is calculated by taking the security’s downside capture return and dividing it by the benchmark’s downside capture return over the time period. Upside Capture Ratio measures a fund’s performance in up markets relative to its benchmark. It is calculated by taking the security’s upside capture return and dividing it by the benchmark’s upside capture return over the time period. Effective Duration provides a measure of a fund’s interest-rate sensitivity. The longer a fund’s duration, the more sensitive the fund is to shifts in interest rates. Average Maturity is computed by weighting the maturity of each security in the portfolio by the market value of the security, then averaging these weighted figures. SEC 30-day Yield represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund’s share price at the end of the 30-day period. It is calculated based on the standardized formula set forth by the SEC. 30-day Effective Yield is a hypothetical figure that estimates what the yield would be if an investor continued to reinvest dividends at the current 30-day yield for one year. Calculated by annualizing dividends paid during the last 30 days of the period. It assumes that income earned from the fund’s investments is reinvested and compounded. Portfolio Turnover is a measure of the trading activity in an investment portfolio—how often securities are bought and sold by a portfolio. It is calculated at the fund level and represents the entire fiscal year ending 10/31/2015.An investment in the fund is subject to risk and there can be no assurance that the fund will achieve its investment objective. The risks associated with an investment in the fund can increase during times of significant market volatility. The principal risks of investing in the fund include: interest rate risk, call risk, risk of default, liquidity risk and non-investment grade securitiy risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. More detailed information regarding these risks can be found in the fund’s prospectus.For more complete information about Madison Funds®, including charges and expenses, obtain a prospectus from your financial adviser, by calling 800.877.6089 or by visiting madisonfunds.com and clicking on prospectus and reports to view or download a copy. Before investing in the funds, consider the investment objectives, risks, charges and expenses. The prospectus contains this and other information about funds and should be read carefully before investing.

Madison Funds are distributed by MFD Distributor, LLC and may be purchased directly from the fund or through your investment professional. Portfolio data is as of the date of this piece unless otherwise noted and holdings are subject to change.

Not FDIC Insured | No Financial Institution Guarantee | May Lose Value

MF-COINX-093016

Shareholder Services Madison Funds Post Office Box 8390 Boston, MA 02266-8390 800.877.6089

Consultant and Advisor Services550 Science DriveMadison, WI 53711 888.971.7135

Sector allocation is rounded to the nearest 0.1%.

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Portfolio Mix

Top Ten Holdings

madisonfunds.com

60.6% Industrials

30.7% Financials

3.4% Utilities

2.8% Other

2.5% Cash